In the first month of the new year, XRP investors are facing a bearish storm as the cryptocurrency experiences a 10% drop in its price. The decline comes as profit-taking dominates the market sentiment, coupled with the emergence of a classic bearish pattern on the technical charts.
On January 3, Ripple’s token breached the support line of a descending triangle at $0.5934, triggering concerns of a potential 17% correction. The descending triangle pattern is characterized by consolidation within a triangle, defined by lower highs and relatively equal lows. In XRP’s case, the pattern broke out on January 3, with the price hitting $0.5048, the lowest level since October 19, 2023.
Efforts to lift XRP were hampered by supplier congestion from the 100-day exponential moving average (EMA) at $0.5934. Subsequently, on January 17, it lost a critical support level provided by the 200-day EMA at $0.5717. The MACD indicator residing in the negative region below the neutral line further indicated a prevailing market sentiment favoring the downside. If the sell-off persists, the token could see a bearish target of $0.4971, reflecting a potential 19% drop from current levels.
The bearish sentiment in XRP is also attributed to profit-booking by sellers. Market intelligence firm Santiment highlighted historically high-risk profit levels for Bitcoin, Ethereum, and XRP. According to Santiment, Ripple’s token price might still recover with increased exposure from ETFs and positive news. However, a crucial indicator for sustained long-term growth would be a breach below 75% of their supplies in profit once again.
Analyst Predicts 800% Surge: XRP to Reach $5 in 90 Days
Amidst the bearish outlook, cryptocurrency analyst EGRAG CRYPTO has sparked excitement within the XRP community by predicting an 800% surge, pushing the token to $5 within the next 90 days. The forecast suggests the initiation of wave 1 in a prolonged bull market that could span several months.
Despite the skepticism expressed by some enthusiasts lacking conviction, the analyst encourages the XRP army to stay steady and dismisses complaints, emphasizing the importance of researching over the past 7-10 years for a deeper understanding of the market dynamics.
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